Wendy and Elliot Koolik's View on why Real Estate will Recover
*As seen on the front page of Sun Sentinel's Home Spot*
Over the past year or so, the slow down in residential real estate sales has received considerable mention in the press, but Wendy and Elliot Koolik share an optimistic view on the future of the market. “Currently, buyers are motivated and sales are starting to accelerate. says Elliot Koolik. We have been busier with showings and have presented more offers to our sellers than in past months.”
According the to National Association of Realtors, pending home sales activity has surged as buyers are taking advantage of the affordable home prices and interest rates.
“What we’re seeing is the momentum of people taking advantage of the real estate market now that Amendment 1 has been passed and the rescue plan has been established.” says Wendy Koolik.
Since Amendment 1 was passed, Floridian’s have been taking advantage of the tax portability, while the rescue plan is giving the economy the closure it needed during the credit crisis. Also boosting the local real estate market, is the influx of interest and showings from foreign buyers due to the favorable exchange rates.
With the economy on its way to stabilizing and the government beginning to take control, the Koolik’s have chosen to take a positive view of the area’s real estate market. Our area is not only a tropical paradise, but it remains a favorite location for tourists to vacation and often invest in a first or second home.
Sellers are welcoming offers and willing to negotiate satisfactory deals while buyers are putting more cash down to offset loan rates while maintaining excellent tax deductions. The move is “on” in the real estate sector once more.
“Right now, it’s time for a change. says Elliot Koolik. With elections in the coming days, there is not doubt that the US economy is going to begin to see, hear and feel changes all around us and I believe it will all be for the better.”
Wednesday, December 17, 2008
Thursday, September 25, 2008
Oct 15, 2008 Economic Stimulus Deadline
It's Not Too Late to Claim Your Economic Stimulus Payment
You must file a return by October 15 to receive a payment prior to year's end. It can take up to eight weeks for the IRS to process the return and issue the check.
People who have no tax filing requirement but have at least $3,000 in qualifying income should file a simple Form 1040A to claim the minimum payment of $300 ($600 for married couples) plus the $300 payment for each qualifying child younger than 17 as of Dec. 31, 2007. Qualifying income includes any combination of earned income, nontaxable combat pay as well as certain payments from the Social Security Administration, Department of Veterans’ Affairs and the Railroad Retirement Board.
For taxpayers who are required to file an income tax return, the IRS will use their 2007 tax return information to determine eligibility for economic stimulus payments of up to $600 ($1,200 for married couples) plus the $300 payment per each qualifying child.
Social Security benefits considered qualifying income include retirement, disability and survivor payments; Supplemental Security Income, known as SSI, is not qualifying income. Veterans Affairs benefits considered qualifying income include disability compensation, disability pension and survivor payments. Qualifying Railroad Retirement payments include the social security equivalent portion of Tier 1 benefits.
Taxpayers must have a valid Social Security Number to qualify for the payment; this includes both spouses filing a joint return and any dependents. Married members of the military may receive economic stimulus payments this fall, even if their spouses or children don’t have social security numbers, following the newly-enacted Heroes Earnings Assistance and Relief Tax Act of 2008. Also, people cannot be claimed or be eligible to be claimed as a dependent on another person’s tax return.
For more information about the Economic Stimulus payments visit the IRS Web site at IRS.gov.
As seen on taxact.com as Summertime Tax Tip 2008
You must file a return by October 15 to receive a payment prior to year's end. It can take up to eight weeks for the IRS to process the return and issue the check.
People who have no tax filing requirement but have at least $3,000 in qualifying income should file a simple Form 1040A to claim the minimum payment of $300 ($600 for married couples) plus the $300 payment for each qualifying child younger than 17 as of Dec. 31, 2007. Qualifying income includes any combination of earned income, nontaxable combat pay as well as certain payments from the Social Security Administration, Department of Veterans’ Affairs and the Railroad Retirement Board.
For taxpayers who are required to file an income tax return, the IRS will use their 2007 tax return information to determine eligibility for economic stimulus payments of up to $600 ($1,200 for married couples) plus the $300 payment per each qualifying child.
Social Security benefits considered qualifying income include retirement, disability and survivor payments; Supplemental Security Income, known as SSI, is not qualifying income. Veterans Affairs benefits considered qualifying income include disability compensation, disability pension and survivor payments. Qualifying Railroad Retirement payments include the social security equivalent portion of Tier 1 benefits.
Taxpayers must have a valid Social Security Number to qualify for the payment; this includes both spouses filing a joint return and any dependents. Married members of the military may receive economic stimulus payments this fall, even if their spouses or children don’t have social security numbers, following the newly-enacted Heroes Earnings Assistance and Relief Tax Act of 2008. Also, people cannot be claimed or be eligible to be claimed as a dependent on another person’s tax return.
For more information about the Economic Stimulus payments visit the IRS Web site at IRS.gov.
As seen on taxact.com as Summertime Tax Tip 2008
Monday, September 15, 2008
Existing Home Sales Rise
Existing Home Sales Hit 5 Month High
Existing-home sales - including single-family, townhomes, condominiums and co-ops - increased 3.1 percent in July to a seasonally adjusted annual rate of 5 million units from a downwardly revised level of 4.85 million in June. Sales were 13.2 percent lower than the 5.76 million-unit pace in July 2007.
NAR President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said the up-and-down pattern may break soon.
"We hope the new tools in the hands of home buyers from the recently enacted housing stimulus package will spark a sustained sales uptrend in the months ahead," he said. "Buyers who've been on the sidelines should take a closer look at what's available to them now in terms of financing and incentives. Given some of the inventory on the market, we also strongly encourage buyers to get a professional home inspection."
Reprinted from REALTOR® Magazine [August, 2008] with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2008. All rights reserved.
Thursday, August 07, 2008
New Buyer Tax Credit
Anybody who has been sitting on the sidelines hesitant to jump into real estate until conditions settle down should know these dates: April 9, 2008, through June 30, 2009.
They mark the eligibility time to qualify for the home-purchase tax credit created by the massive housing bill approved by Congress.
If you haven't owned a house during the past three years -- or are considering buying your first home -- and can go to closing before the end of June, you might be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).
The new credit is expected to benefit hundreds of thousands of buyers, although Congress set no limit on how many people can qualify.
Because the specifics of the credit changed during the past month as the Senate and House negotiated a compromise, here's a quick overview of the credit in its final form.
• The basic idea: To jump-start housing sales and clear unsold real-estate inventories, Congress is offering tax credits to pull in new purchasers. Buy any house -- new, old, any location or condition, any price range -- within the designated time period, and the IRS will cut up to $7,500 off your tax bill for either this year or next.
The tax credit is refundable, so if your tax bill is less than the credit amount, you get the difference back from the Treasury.
For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income-tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund.
• Eligibility rules: Do you own a home? If so, you're not eligible for the credit. Did you sell your home more than three years ago and rent? You are eligible.
The same is true if you've never owned a home. Close on a house before June 30, and you can claim a credit of up to 10 percent of the purchase price of the property up to a maximum of $7,500.
If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down.
You can't claim the credit if you're a resident alien, financed the property using a state or local housing agency tax-exempt bond mortgage or don't plan to use the house as your principal residence.
• Payback: Unlike some past tax-credit programs, this one requires beneficiaries to repay the credit over an extended period.
Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings.
During a 15-year payback period for the full $7,500 credit, the cost would be $500 a year. If you sell the house before the end of the repayment period and have no gain on the sale, you won't be expected to pay the credit back from the proceeds.
If you have a net gain, the "recapture" can't exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.
At its core, the new tax credit functions much like an interest-free loan for up to $7,500. You pay the principal back in increments over time, with no interest charged.
How do you claim the credit?
If you pass the eligibility tests and buy before June 30, you simply request the credit on your tax return for either 2008 or 2009.
Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return.
The home builders association will launch an educational Web site, www.federalhousingtaxcredit.com, with additional information for consumers.
They mark the eligibility time to qualify for the home-purchase tax credit created by the massive housing bill approved by Congress.
If you haven't owned a house during the past three years -- or are considering buying your first home -- and can go to closing before the end of June, you might be eligible for up to a $7,500 credit against your federal taxes for 2008 or 2009 ($3,750 if you file taxes as a single person).
The new credit is expected to benefit hundreds of thousands of buyers, although Congress set no limit on how many people can qualify.
Because the specifics of the credit changed during the past month as the Senate and House negotiated a compromise, here's a quick overview of the credit in its final form.
• The basic idea: To jump-start housing sales and clear unsold real-estate inventories, Congress is offering tax credits to pull in new purchasers. Buy any house -- new, old, any location or condition, any price range -- within the designated time period, and the IRS will cut up to $7,500 off your tax bill for either this year or next.
The tax credit is refundable, so if your tax bill is less than the credit amount, you get the difference back from the Treasury.
For example, if you're an eligible buyer of a home this year and you owe the IRS $4,000 on your total 2008 income-tax bill, your $7,500 tax credit could wipe out everything you owe plus get you a $3,500 refund.
• Eligibility rules: Do you own a home? If so, you're not eligible for the credit. Did you sell your home more than three years ago and rent? You are eligible.
The same is true if you've never owned a home. Close on a house before June 30, and you can claim a credit of up to 10 percent of the purchase price of the property up to a maximum of $7,500.
If your adjusted gross income exceeds $150,000 ($75,000 for singles), the credit maximum begins to phase down.
You can't claim the credit if you're a resident alien, financed the property using a state or local housing agency tax-exempt bond mortgage or don't plan to use the house as your principal residence.
• Payback: Unlike some past tax-credit programs, this one requires beneficiaries to repay the credit over an extended period.
Starting in the second tax year after purchase and continuing for up to 15 years, taxpayers are expected to make pro-rata repayments to the government on their federal filings.
During a 15-year payback period for the full $7,500 credit, the cost would be $500 a year. If you sell the house before the end of the repayment period and have no gain on the sale, you won't be expected to pay the credit back from the proceeds.
If you have a net gain, the "recapture" can't exceed the amount of your gain. In other words, the federal government is taking on all or much of the risk that the value of your new house won't increase over time.
At its core, the new tax credit functions much like an interest-free loan for up to $7,500. You pay the principal back in increments over time, with no interest charged.
How do you claim the credit?
If you pass the eligibility tests and buy before June 30, you simply request the credit on your tax return for either 2008 or 2009.
Even if you purchase in 2009, you can take the credit against your 2008 taxes by filing an amended return.
The home builders association will launch an educational Web site, www.federalhousingtaxcredit.com, with additional information for consumers.
Article by:
Kenneth R. Harney covers housing issues on Capitol Hill for the Washington Post Writers Group. You can write to him at P.O. Box 15281, Chevy Chase, Md. 20815 or send e-mail.
kenharney@earthlink.net
Wednesday, July 09, 2008
FL Housing Prediction
Jim Cramer predicts housing turnaround in Florida.
See the interview by clicking below:
http://www.thestreet.com/video/10421733/index.html#1612701980
See the interview by clicking below:
http://www.thestreet.com/video/10421733/index.html#1612701980
Friday, April 25, 2008
Market Trends
Palm Beach County Market Trends
With the holidays behind us and the arrival of Florida's beautiful spring weather,
I've noticed a real pick up in real estate activity.
What I notice the most - is the need for motivation on both sides: seller and buyer.
Once motivation is achieved - then transactions almost become effortless.
While the market is still challenging, I feel like things are definitely starting to
pick up.
Till next time,
Elliot
Tuesday, January 15, 2008
6 Reasons to Buy
6 Reasons to buy a home in the New Year
1. A Place To Live.
Your home is not only a place to live, but also a place to spend quality time with family and friends.
2. The Options You Want.
The great aspect of today’s market is that you have plenty of inventory to choose from in order to find a home with the options you are looking for.
3. Tax Savings.
Your home is one of the best tax shelters available, since mortgage interest and property tax can be deducted. Also, when you sell a home, the first $250,000 (if you’re single) or $500,000 (if you’re married) of profit is tax free.
4. Equity As A Long Term Investment.
The longer you own a home, the more equity you build in your home, as long as don’t try to use it.
5. Waiting Can Be Expensive.
Waiting for a lower purchase or interest rate is like playing Russian roulette. Don’t let it rob you of owning the home of your dreams or building personal wealth.
6. You Deserve It.
Your home is your refuge in a busy and stressful world. Knowing you can do whatever you want to make your home your own personally sanctuary is empowering – and you deserve it.
Your decision to purchase now is one you won’t regret.
(Originally written by Garrett A. Foster – edited by Elliot Koolik)
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